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Leveraging Technology in the Logistic Industry

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Obi Ozor, Co-Founder, Kobo360.com with CFA

The Logistic industry is a multi-million Naira industry, but it is faced with a number of challenges. A number of Startups are trying to use technology to bring greater efficiency to the sector. One of such Startups is Kobo360.com, a Logistic platform, leveraging technology in the Logistic industry.

I recently had a chat with Obi Ozor, Co-Founder, Kobo360.com and he spoke at length on the problems and prospects of the Logistic industry.

Obi stated that the Logistic industry, from the African market perspectives, is worth about $300 billion.

He further emphasised that the industry has different branches, such as the e-courier, trucking and air and sea freight, but in Nigeria, we are more into the e-courier and trucking branches of the Logistic industry. “The trucking branch of the industry is about $80 billion across Africa, while in Nigeria, it is about $18 billion. The e-courier projection is about $2 billion”, he maintained.

Obi is of the opinion that, although, the reward derived from the Logistic industry is huge, so are the challenges therein, because, it is a tough line of business to venture into.

He said that he decided to venture into the Logistic business because, it is the heartbeat of any economy. He alluded to the importance of transporting the products from one point to the other, citing the example of the fact that the building of the railways in the USA, aided, in no small measure, the movement of goods during the industrial revolution.

He maintained that the Logistic is the foundation of economic development. “We know, of course that, if e-commerce and the new technology industry will flourish n our continent, we actually need to solve that underlying factor”, he stated.

Obi stated that his plans to use technology to in order to bring about change in the Logistic industry will come in phases.

“Of course, a Startup has limited capabilities. You don’t have some of the financing or experience, but from the little experience that we have, and our being open to learning, we know that there are few things that technology can do”, he reiterated.

He gave the example of how technology can bring about transparency in pricing in the e-courier sector of the Logistic industry. He also stated that, technology can assist in aggregating all the trucks available in the country in one place, for the people who need the services t access them easily.

Obi stated that those in e-commerce can, actually, not solve their Logistics problems alone, even though, just because they are investing in it as it is a wrong move on their part. “Logistic is big business that has serious challenges and one of the problems in Logistics is that, it requires serious execution and operations.

It is not an industry where you just an idea and you come in and things will start working”, he noted. He stated further, that, the Logistic industry should be left to solve the Logistic problems while the e-commerce operators need to trust them to solve it.

On cash or pay on delivery, Obi stated that this originated from India and we have copied it here in Nigeria, but we need to modify it to what works for us, such as looking for a safe place to make the exchanges of the deliveries and cash payments as the lives of dispatch riders are jeopardised on daily basis. He also stated that, many for the e-commerce companies do not have infrastructure in every part of the country, so, there is the need to work with government on this.

Talking about competition, Obi stated that the Startups , like his own, hope to hope to apply innovation to the business, to enable him to compete favourably with the big names in the industry.

He reiterated that that, one thing that his company has has, is the ability to listen and understand the problems and solving them, in conjunction with the stakeholders, of which the customers are a part.

He emphasised that, Logistic is too complex an industry for a single person or company to solve alone. He maintained that there is the issue of capacity, when it comes to Logistics, hence, all stakeholders must come together to solve those issues.

Speaking on how he intends to deal with user education in the Logistic industry, Obi stated that, although, it is a big problem, two-day a week sessions are, however, organised for drivers, free of charge, where they are taught and tested on basic understanding on how to operate all those expensive assets and customer service.

He stated that the easy design of the platform, with mostly clicks , with less texts to make it easy  for the users to apply and operate and there is also theR & D, which is set to develop a voice only app, to make the users more comfortable, by bringing everything down to their level.

 

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world.

So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Logistics

FG to Partner Boeing to Launch National Carrier

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Sen. Hadi Sirika, Minister of State for Aviation, has said that the Federal Government is set to sign a Memorandum of Understanding (MoU) with Boeing on the establishment of a national carrier for Nigeria.

Sirika, in his tweet on his handle,@hadisirika on Thursday, said the MoU would be signed during the forthcoming Third ICAO World Aviation Forum (IWAF) in Abuja.

The minister also disclosed that Airbus of France had indicated interest in partnering with the government on the proposed carrier and establishment of Maintenance, Repair and Overhaul facility in the country.

He said that the government and Airbus would also discuss further during the IWAF 3 that would hold from Nov. 20 to Nov. 22.

“Airbus signified interest in our National Carrier and our MRO, we will discuss further during the upcoming ICAO forum,’’ he said.

It would be recalled that the minister had expressed President Muhammadu Buhari’s administration determination to establish a national carrier and MRO in a bid to reposition the nation’s aviation sector.

He had since announced the appointment of transaction advisers for the national carrier and MRO.

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Logistics

NIPOST at Retreat, Rejigs to Remain Afloat

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Nigerian Postal Service (NIPOST) is repositioning the post office as a critical national infrastructure to utilize its extensive network penetration for social and financial growth, Bisi Adegbuyi, postmaster general of the Federation has said.

 

Adegbuyi at the NIPOST zonal strategic management retreat in Kaduna, said that the retrest, will help determine the true position of NIPOST strategic milestones in the journey towards actualization of the set objective.

 

He said, “The retreat will provide us with the opportunity to x-ray our position as we analyze our performance so far against set objectives with a view to taking remedial measures in the area of sharp deviations and as well re-invest a new wheel where necessary in our march to the promise land.

 

“In the last five months of uninterrupted strategy implementation, a lot has happened, the corporate restructuring is taking shape, the business units are reshaping their products, the zones are now on ground supported by their districts while the Chief Operating Officer has taken full control of the operations for efficiency.

 

He observed that the greatest challenge to the relevance of NIPOST is in the area of product offering adding that, “For a long time NIPOST has remained a mono-product organization focusing mainly on mail and even that too is challenging.”

 

Malam Abdulrahim Baba, director, Strategy and Business Development, said the post office can help farmers and small businesses scale up their production by repackaging their products so that they can acquire market instead of letting their products rot away.

 

He added, “NIPOST will put internet facilities and computers in our rural post offices so that the children living in the rural areas can learn how to use the computer and the internet because presently, the computer and internet is used in all sectors.”

 

He informed that the NIPOST presently has seven different business from the one that was available in the past adding that, “We have cut down from 36 territories to seven zones to conserve resources and provide good services to our customers in a bid to create a new playing field.”

 

Malam Nasir El-Rufai, governor of Kaduna state, represented by Engineer Mahmud Hassan, commissioner, Kaduna state Ministry of Works and Transport, urged participants to live up to expectation and the sky is their limit.

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Logistics

Taxify Set to Launch Services in Abuja

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By peter oluka

Taxify, the fastest-growing ride-sharing platform in Europe and Africa, launches in Abuja with hundreds of driver-partners signed up to the platform and ready to accept rides all across the city.

To celebrate, Taxify is offering a 40% discount to riders during the month of November.

Uche Okafor, the operations manager, comments:  “Abuja is an exciting and thriving market with an outgoing population for private urban transport. We’re very excited to launch here and have a solid team on ground.

“We are confident that Taxify can effectively contribute to healthy competition by improving the quality of service and lowering the prices for the end customer.”

Taxify takes only 15% commission from its drivers, compared to the 25% that competitors take.

The lower commission allows Taxify to offer lower prices for riders and ensure that drivers still keep more money in their pockets.

Taxify treats our drivers better so that they can in turn treat our riders better. Taxify does this by ensuring that drivers are able to earn more driving on our platform than on any other platform.

This combined with our end to end support ensures that our drivers are happier driving on Taxify and are ultimately able to provide better quality service for riders. Taxify also believes in providing exemplary customer service to riders, with a local customer support team that offers real time over the phone support.

Taxify is an international urban ride-sharing platform founded and headquartered in Tallinn, Estonia.

Taxify is operating in 20 countries in Europe, the Middle East, Africa and Central America. Taxify has a global team of over 300 employees, and is considered one of the fastest-growing ride-sharing platforms in Europe and Africa.

In August 2017, Taxify announced a strategic partnership with Didi Chuxing, the world’s leading mobile transportation platform. The Taxify app is available on iOS and Android.

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